Six
DIRECTION OF FUTURE RESEARCH
The purpose of the present chapter is to indicate some of the future
research priorities for economics. The main conclusion is that the
overall framework of Islamic economics can contribute to the
development of economics in a direction which will ‘make . this
discipline meaningful and suitable for the challenges of the future. In
fact, our prediction is that the real life problems of the future would
virtually force the Islamic solutions on humanity. But it may take
much longer for humanity to reach these solutions in a hit and miss
fashion. Islamic economics can expedite the process of discovery of
those solutions which are essentially needed by humanity. The only
precondition is that the world should shrug off its preconceived
notions and prejudices against religion and religion-related ideas.
After all, the civilized world owes most of its wisdom to religious
sources. Even the success of the capitalist system is attributed to
Christian ethics. In the following discussion we shall point out some
of the most urgent research tasks in order to bring it closer to the
Islamic approach to economics.108 IsLAMIC ECONOMICS
1, HOLISTIC APPROACH
If economics has to play a helpful role in directing the human future,
it must perceive the actual relationship that has emerged between the
household, the market, the government, the environment and the
international institutions. It must conceive humanity not merely as an
economic but also as a social, political and psychological entity
whose survival and quality of life depend on all the above factors and
their interdependence.
Economists should not be content with raising such questions
as: Is the firm profitable? Is there full employment? Are prices
stable? Is the growth rate satisfactory? Instead, they should also ask
questions regarding human, psychological, motivational and
environmental needs. They should also see in which way the
economy is deviating from the path of human falah. For
concentrating on the economic problem of man is too narrow an
approach. It reduces human beings to merely economic creatures,
which does offence to both human nature and personality. In fact,
there are no economic problems as such! There are only human
problems. They should be perceived by keeping the human beings in
the centre. For example, the relevant questions regarding technology
are: How does it affect the employment of those already in jobs?
How will it prevent those who are seeking jobs so as to enter the
labour market? Who will pay for the re-training and rehabilitation of
those misplaced? How will the new technology affect the quality of
life of those who will work under the new conditions? What type of
stress and strain will it bring? How will the new technology affect
the international market? How will it affect the international
relations? What will be the new tariff system and how will it affect
the existing agreements with other nations? Scores of such questions
will merit discussion.
The traditional economics has treated most of such questions
as exogenous.' One of the reasons for the reluctance to accept this
approach is that it introduces qualitative variables into the theory,
which violates the economists’ obsession with numbers and
quantities. Their eagerness to transform everything into quantitative
analysis so that some analytical technique comes handy dissuades
them from adopting this approach. In fact, one of the reasonsDIRECTION OF FUTURE RESEARCH 109
economics could not become a realistic social science is that it has
tried to grapple with complex human problems as merely economic
problems. As a result, it has lost the comprehensiveness of a human
science.
Islamic economics takes a comprehensive view of the human
problems. It employs a multi-disciplinary approach to these
problems. This is an area where Islamic economics can make a
contribution to the global pool of knowledge.
2. SEARCH FOR AN INTEREST-FREE
INTERNATIONAL ECONOMIC ORDER
One of the greatest challenges for the twenty-first century would be
to develop the vision of an alternative economic order which is free
from interest on capital. Islamic economics has produced a body of
knowledge which attempts to show how financial institutions can be
established on an interest-free basis. But there are still a number of
unresolved questions. Such a system would truly succeed if the world
as a whole agrees to abolish interest. This would mean ‘euthanasia
of the rentier’ — individuals, organizations, and states. This is an
imminent task before humanity if it has to unshackle man from the
bonds of finance.
Human development has accepted the political freedom of
man as a valid concept but it has not yet fully recognized the
importance of the economic freedom of man as a desirable goal. The
economic freedom of man will never be realized so far as the
fruits of one’s labour are allowed to be reaped by the rentier in the
form of interest. The challenge before the economists of the world
is to find out an institutional mechanism which provides finance free
of interest so that the idle resources of the world are used for the
benefit of humanity. So far the economists have given very little
thought to this great challenge. The day humanity is able to abolish
interest effectively will be the day of its real emancipation. Political
freedom is only a half-way house. The abolition of interest would
mean what Keynes has rightly termed as a ‘sea change’. The
foremost item on the future research agenda should be to find out a
viable and suitable interest-free international economic order.110 IsLAMIC ECONOMICS
3. TECHNOLOGY
Economists have not given adequate attention to the subject of
technology. The technological revolution has engulfed the entire
world. The information technology is influencing our lifestyles,
production patterns, resource allocation and development priorities.
Economists should not be mute spectators, allowing things to happen
as they do. They must analyze the impact of technology on human
lives. In this area Islamic economics has a contribution to make. It
raises such questions as stated below:
What are the implications of technology for economic
justice, both positive and negative? This means, how is
technology going to affect the relative shares of different
sectors of the economy in the national pie? Or, how can
technology be used to reduce economic and infrastructural
disparities between rural and urban and backward and
developed regions, and between the rich and poor nations?
What could be the international mechanism to share the fruits
of human intellectual endeavor without creating the
‘free-rider’ problem?
What are the possible ethical implications of the new
technology and how can it be harnessed to the benefit of
humanity?
What are the technological research priorities for the world
and for the different nations?
These and similar questions should be the priority of the
economists during the years to come.DIRECTION OF FUTURE RESEARCH i
4, ECONOMIC POWER
Another area which has received scant attention of the economists is
the question of economic power. Islamic economics accords a central
position to economic justice. The whole question of economic justice
hinges on the basic question: how does society protect its weak from
its strong? The same is true at the international level. How does the
world organize itself to protect the weak nations from the tyranny
of the strong in the field of economics? It would require an analysis
of the actual conditions to show the various forms of misuse of
power against the weak. Then it would require the formulation of
such public policies or the development of such institutions as would
protect the weak from the strong. Laws alone would not help. Power
has to be controlled. It must be made accountable by making
individuals participate in decision-making. The Islamic concepts of
khildfah (vicegerency), shura (consultation), ukhawah (brotherhood),
‘adl (justice), ihsan (benevolence) have the potential of making a
contribution to tackle the problem of economic power.